Ed Balls Accuses Labour Minister Of Using 'Liz Truss Economics' To Bump Up Defence Spending

Ed Balls accused Labour of using “Liz Truss economics” after the government announced it planned to bump up defence spending in the next decade.

At today’s Nato summit, the prime minister will join his allies in promising to spend 5% of gross domestic product (GDP) on national security by 2035.

Starmer previously announced ambitions to spend 3% of GDP on defence over the next decade, but that has now been increased to 3.5%.

The remaining 1.5% of the GDP pledge will be met by funds which go towards “national resilience and homeland security”.

That includes costs spent on UK energy infrastructure and tackling people smuggling gangs.

On ITV’s Good Morning Britain, presenter Ed Balls skewered Cabinet Office minister Pat McFadden for these “smoke and mirrors” numbers.

He said: “The reality is your defence spending pledge doesn’t happen until 2035.

“There is no money set aside to pay for that rise in defence spending after 2028/29.

“Economists say there is a £40bn gap. Is that going to come from more taxes, more spending cuts, out of thin air? Is it just smoke and mirrors?”

McFadden said Labour previously announced a defence expenditure increase to 2.5% of GDP, and set out how Labour is going to pay for it.

But Balls cut in: “You just set out a pledge to get to 2035, and you haven’t set out a pledge about how you’re going to pay for it.”

The presenter added: “This is an unfunded pledge without saying where the money is coming from. You used to say that was Liz Truss economics. It’s what you’re doing!”

McFadden said the government’s 2.5% hike for defence was set out clearly in the last spending review.

He promised the government would outline how it intends to fund this new national security hike in the next review, which will take place in the next two to three years.

“Until you’ve set that out, it’s not real then,” Balls hit back. “So, 2.5% is real, because you’ve set that out in the spending review.

“What you’re announcing to us in your press release has no substance to it because it’s not underpinned by a spending review.

“We asked your office for more details and they said, ‘we’re afraid we’ve got nothing to add to the press notice for now’.

“The reality is, for the next five years until you can get to a spending review which can substantiate this, it’s just smoke and mirrors.”

“There will be a spending review in less than five years,” McFadden said, noting “future spending reviews will set out our commitments for the future”.

“There’s nothing unusual in that, that’s exactly how the system works.”